The Significance of E-Business and E-Commerce
The report talks about the logistics management and supply chain management. Tesco Company has been selected for the report. It explains that how the company is maintaining logistics management within the organization. Along with this, it describes the significance of the e-business and e-commerce in the global market. It tells that how e-business and e-commerce affect the trading activities of the Tesco. In addition, it explains the best practices of the Tesco. It describes that how e-business and e-commerce activities are providing benefits to the Tesco.
A.Logistics management
Tesco Plc is a British global grocery company which was founded in 1919 by Jack Cohen. It’s headquartered is located in Welwyn garden city, Hertfordshire, England, United Kingdom. It is a third biggest retail company in the world evaluated by the profits and ninth biggest merchandise retailer around the world measured by the revenue. It has opened its stores in approx 12 countries across Europe and Asia. It is one of the biggest grocery players in the United Kingdom, Thailand, Ireland, and Hungary. There are approx 476,000 employees are employed in the company. The company is dealing with various supermarket products across the world. Along with this, supply chain management plays an integral role in Tesco (Lowe, George, and Alexy, 2012).
Supply chain management is the management and organization of the flow of goods and services. It also includes raw material, work in progress, and finished goods within the organization. Supply chain management manages and controls the raw material which is used by the company. Along with this, supply chain management also plays a significant role in order to attain the goals, objectives and mission of the firm. Logistics management is the element of the supply chain management which is used to meet and fulfill the customer’s needs, requirements and demands through the planning, organizing, control, and implementation of the effective flow and storage of information, products, goods and services from beginning to end. This management can enhance and increase the competitiveness of the Tesco in order to meet the future mission and vision of the company. Through effective logistic management process, Tesco is able to accomplish the long-term success and growth of the firm. The supply chain management and logistics management may be defined as the process of the rendering the raw material, information, goods, products, and services to the other firm in order to make the finished products, goods for the consumption of the customers around the world (Zhao, 2014).
Best Practices of Tesco’s Logistics Management
Tesco is involved in the process of logistics management in order to fulfill the needs, requirements, and expectations of the consumers in the world. The current logistic management of the Tesco is different from the origins of the company. This management is essential to deliver the effective and unique quality and features of the products and services to the customers in the world. Through supply chain management and logistics management, the company is able to able to monitor the capability and quality of the supply system within the organization. The company can understand and evaluate the requirement of the customers and it can maintain a control over its business by maintaining effective logistics management in the organization (Fawcett et al, 2011). The company is involved in downstream and upstream business activities in order to gain the competitive advantages in the market. With effective supply chain management and logistics management, the company is able to use effective and unique distribution channels to enhance and increase the revenue and profit of the company. Along with this, it uses e-commerce to take order for the supply of products and services for the customers worldwide. It also provides wide opportunities to the consumers around the world. E-commerce and e-business are used by the company to increase and enhance the efficiency and effectiveness of the logistics management within the organization. The logistics management and supply chain management also helps to maintain an effective relationship with customers around the world (Fernie and Sparks, 2014).
Tesco has also built and developed new distribution centers to provide products and services to the consumers globally. It will also help to reduce the individual operations of the company. Further, electronic trading, collaborative improvement and information sharing are becoming the essential part of the Tesco for succeeding and growing its business globally (Farahani et al, 2014). In addition, the company uses effective and dynamic logistics strategies to beat the competitors in the market. The company has become an international leader in the retail industry by using effective logistics management and supply chain management. But the firm needs to change supply chain management and logistics management to reduce the various key challenges and risks around the world. Now it is assumed that effective and unique logistics management can increase and maximize the competitiveness of the Tesco globally (Laosirihongthong, Adebanjo and Choon Tan, 2013).
E-business is the process through which business activities and operations can be conducted on the internet. It includes buying and selling products, goods, processing payments, supplies and services, managing production control and sharing information etc. On the other hand, e-commerce is a business of the buying and selling online. It includes various technologies such as supply chain management, online transaction processing, mobile commerce, electronic data exchange, and automated data collection system. There is a close relationship between e-commerce and e-business in order to fulfill the mission and vision of the firm around the world. E-commerce and e-business are used by the Tesco to beat the competitors globally (Akter and Wamba, 2016). Various digital mediums and online channels are used by the company to expand and explore its business in domestics market and international market as well. It uses several effective strategies and policies of the e-commerce and e-business to flourish its business activities globally. The market share of the physical market is reducing with the introduction of digital medium channels across the world. The offline market also uses the medium of e-commerce and e-business trading activities in order to meet the long-term success and growth. E-commerce and e-business are the broad concepts of buying and selling of products, goods, services, and information through the use of computer networks, internet and digital channels in the global market (Colla and Lapoule, 2012).
Innovations and Developments in E-Business and E-Commerce in Tesco
E-commerce primarily monitors and focuses on the customers of the organization while e-business expands and explores the connectivity of the Tesco. E-business is also known as the e-marketing. It is quite unique and effective concept in order to attain the goals and target of the firm. It also includes internet marketing. Internet marketing is the wider concept and it increases the awareness of the customers related to the products and services through wireless, email, websites and other social media channels. While e-marketing is an extensive concept which also includes the internet marketing. By using of e-commerce, internet marketing, and e-business, the company could be able to make a good image in the global market (Monteiro et al, 2013).
The company can take various benefits through recent innovations and developments in e-commerce. Through innovations and developments in e-business and e-commerce, the customers are able to find detailed information about the products and services online. It will also help to customers to take effective decisions related to the products and services around the world. It also helps to improve the communication and collaboration between customers and company as well. The queries and problems are directly resolved by these mediums and channels. The company can control its inventory and stock by using of innovative e-commerce and e-business channels. It also helps to maximize and increase the profitability and revenue of the company (Huang and Benyoucef, 2013).
E-business and e-commerce are considered the multichannel approach to fulfill the goals and objectives of Tesco. In traditional times, the companies were used offline channels and sources in the global market. Thus, the customers were used to go in the market to buy the products and services as per the needs, wants and expectations. But in today’s era, e-business and e-commerce provide wider opportunities to the consumers (Terzi, 2011).
The consumers can take help of the mobile device, tablets, and some other device to purchase the products and services around the world. It will also help to flourish and explore business activities and operations of Tesco internationally. Along with this, Tesco must use some effective and dynamic media channels and websites to promote the products and services of the firm. Through innovations and developments in e-business and e-commerce, consumers can provide their feedback and reviews to the company related to the products, goods, and services rendered to them. On the basis of feedback and opinions, the company improves its distribution and promotion strategies in order to meet the needs, requirements, and expectations of the consumers around the world. The consumers can buy the products and services easily by using of innovative e-business and e-commerce. It will also help to build and develop trust and loyalty among the customers around the world. It will also help to maintain sustainability and good culture in the environment and company as well. These are the benefits of the innovations and developments in e-business and e-commerce in the organization. It will also help to maintain a dynamic business environment in the global market (Chiu et al, 2014).
Tesco is one of the biggest leaders in grocer and supermarket industries around the world. The company is involved in the business to business type of trading activities across the world. They provide grocery products and services to the consumers in the world with the help of wholesaler and distributors as well. In this way, the suppliers need to maintain a good relationship with customers in the market for rendering products and services. It will help to reduce the time for consumers. Along with this, the company uses effective and dynamic advertisement and promotional strategies to attract more consumers globally. In addition, the company maintains sustainable human resource management to fulfill the needs and requirements of the employees. Further, it uses unique growth strategies and corporate level strategies in order to determine the long-term objectives, mission, and goals of the company. These are the best practices of the Tesco through which the company is achieving its effective and unique objectives (Wood et al, 2016).
There are various benefits that can be achieved by the Tesco after implementation of various strategies in e-commerce and e-business which have been discussed below.
- It helps to reduce and element the cost of products within the organization. The high cost of a product influences the profit and revenue of the company. Therefore, the company must control and manage the cost of production in the global market. It also helps to make appropriate and adequate decisions related to the quality and features of the products (Ahi & Searcy, 2013).
- Efficiency and effectiveness are another benefit of these best practices within the organization. With help of effectiveness and efficiency, the company can increase and enhance the outputs of the firm. It will also provide various growth opportunities to the customers (Lowe, George and Alexy, 2012).
- Implementation of the best practices also helps to reduce the prices of the grocery products globally. Further, it increases the demand for the products and services. By implementing best practices such as e-commerce and e-business, Tesco is able to attain the competitive advantages around the world.
- It also helps to increases and enhances the profit and outcomes of the Tesco. Now it is assumed that best practices provide various benefits to the company. None of the company can expand and explore its business globally without using effective and dynamic best practices within the organization (Leonard, 2012).
Conclusion
On the above discussion, it has been concluded that Tesco can get effective and dynamic advantages by implementing e-business and e-commerce activities within the organization. It will help to reach target audience in the market. It is the good platform to expand and explore trading activities globally. Further, supply chain management and logistics management also provides various growth opportunities to the Tesco. It will help to maintain a reciprocal cordial relationship with consumers around the world. In this way, the company is becoming a global leader across the world. Along with this, the company should improve its logistics management and supply chain to gain various benefits in the market.
References
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Akter, S. and Wamba, S.F., 2016. Big data analytics in E-commerce: a systematic review and agenda for future research. Electronic Markets, 26(2), pp.173-194.
Chiu, C.M., Wang, E.T., Fang, Y.H. and Huang, H.Y., 2014. Understanding customers’ repeat purchase intentions in B2C e?commerce: the roles of utilitarian value, hedonic value and perceived risk. Information Systems Journal, 24(1), pp.85-114.
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Farahani, R.Z., Rezapour, S., Drezner, T. and Fallah, S., 2014. Competitive supply chain network design: An overview of classifications, models, solution techniques and applications. Omega, 45, pp.92-118.
Fawcett, S. E., Wallin, C., Allred, C., Fawcett, A. M., & Magnan, G. M., 2011, Information technology as an enabler of supply chain collaboration: a dynamic?capabilities perspective, Journal of Supply Chain Management, vol. 47 (1), pp. 38-59.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.
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Laosirihongthong, T., Adebanjo, D. and Choon Tan, K., 2013. Green supply chain management practices and performance. Industrial Management & Data Systems, 113(8), pp.1088-1109.
Leonard, L. N., 2012, Attitude influencers in C2C e-commerce: Buying and selling, Journal of Computer Information Systems, vol. 52 (3), pp. 11-17.
Lowe, M., George, G. and Alexy, O., 2012. Organizational identity and capability development in internationalization: transference, splicing and enhanced imitation in Tesco’s US market entry. Journal of Economic Geography, 12(5), pp.1021-1054.
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Zhao, S., 2014. Analyzing and evaluating critically Tesco’s current operations management. Journal of Management and Sustainability, 4(4), p.184.
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